The condition P = MC implies that
A. there is no consumer surplus for any consumer.
B. the amount of consumer surplus is infinite.
C. an individual who values the product at more than P will receive consumer surplus.
D. an individual who values the product at less than P will receive consumer surplus.
Answer: C
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The value of the marginal product of new capital increases when the:
A. productivity of new capital increases. B. the price of the good the firm produces decreases. C. real interest rate increases. D. price of new capital goods increases.
Which of the following explains the "beauty premium" differences in wages?
a. People who spend time on their personal appearance may send a signal that they are more productive workers. b. Personal appearance and intelligence are inversely related. c. The "superstar phenomenon" explains the "beauty premium.". d. Better-looking people are more efficient; thus, they are paid an efficiency wage.
A change in the price of a good ____ its supply curve and ____ a movement along its supply curve. Question 10 options:
A. shifts; does not cause B. shifts; causes C. does not shift; causes D. does not shift; does not cause E. None of the above because the change in the price might cause either a shift in the supply curve or a movement along the supply curve depending on the
In the graph shown, what change would increase production efficiency?
A. Moving from C to D B. Moving from D to B C. Moving from A to D D. Moving from A to B